According to Mercedes-Benz South Africa (MBSA), the temporary shutdown of its East London assembly plant is no cause for alarm.
Speaking to IOL, the company said that the halt from June 24 to 30 July is pre-planned.
“An annual non-production period at the East London production plant is standard procedure and it is common cause for production plants to suspend production based on volume adjustments in the production programme,” said an MBSA spokesperson.
This stance was reiterated by the National Union of Metalworkers of South Africa (NUMSA), which told Moneyweb that this is not a unique occurrence, nor one that it is currently concerned about.
“Volkswagen suspended production for a month. Nissan has done that [too],” said NUMSA general secretary Irvin Jim.
“Mercedes-Benz are now handling their own challenges but we have not been told beyond the period they won’t be coming back [into production].”
In the case of Volkswagen’s temporary shutdown, this was to upgrade its factory in preparation for the production of the VW Tengo at the facility.
It is unclear if the suspension of vehicle production at the Mercedes-Benz plant is to perform similar upgrades, or for other operational reasons.
Either way, Mercedes-Benz has committed to keeping employees engaged during the shutdown in the form of various training programmes ahead of the plant’s re-opening at the end of July.
Concerns over US tariffs
When the news of the shutdown first broke, it was met with shock from many East London locals who presumed the worst.
The Mercedes-Benz factory plays a critical role in the East London economy as one of the city’s leading employers.
If the plant were to close down permanently, this would have a devastating effect on the local economy.
Furthermore, concerns regarding the South African car manufacturing industry have been heightened in recent months thanks to the US tariff changes announced by Donald Trump in April 2025.
Approximately 64 per cent of the goods South Africa exports to the US comprise cars and automotive components – with the Mercedes-Benz C-Class that is manufactured in East London being among the most popular exports.
Therefore, the tariffs implemented by Trump present a particularly significant concern for South Africa’s vehicle manufacturing industry as a whole.
Amid these tariffs, as well as industry trends in general, other major automotive brands are currently considering shutting down their production operations in South Africa.
For example, TopAuto previously reported that Nissan is considering closing is South African factory in Gauteng by the end of 2027.
However, it appears the temporary shut-down at MBSA’s East London factory is unrelated to these more general South African automotive industry concerns.
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